Local shares tumble -0.7pc on Thursday, while Aussie dollar was hammered. Picture Getty
ASX Large Caps: Shares and Aussie dollar hammered; Aussies tend to keep stocks for more than 10 years, report finds
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- Local shares tumble -0.7pc on Thursday
- Aussie dollar also hammered, now trading at US65.4c
- Half of Aussies expect to hold their investments for over 10 years – research
The ASX 200 index dropped by 0.75% on Thursday, tracking movements on Wall Street overnight.
Investors ditched stocks and bonds across the board following Fitch Ratings’s decision to downgrade US sovereign credit from AAA to AA+.
The downgrade pushed the CBOE VIX (also called the fear index) by more than 15%, while sending bond yields to 9-month highs (bond prices fall when yields rise).
On the ASX, all sectors were down today with the exception of Staples stocks. Tech was the biggest loser, down almost 2%.
Iron ore miners extended losses as iron ore futures in Singapore continued to retreat by around 2% to $US101.95 a tonne.
Meanwhile, the Aussie dollar has been hammered hard, now trading at US65.3c, following the RBA’s decision to keep rates steady on Monday and Fitch’s downgrade.
AMP economist Shane Oliver said the latest dip was “not cause for concern”.
“It’s not a major breakdown of the Aussie dollar just yet,” he said.
Aussies hold their stocks for over 10 years: report
Meanwhile, new research from online brokerage, Stake, reveals around half of Aussie investors expect to hold their investments for over ten years on average, and around a third expect a timeframe of 6-10 years.
Just 5% of stock market participants consider themselves to be short-term traders.
Local shares are the most popular asset type, and over the past 12 months, investors primarily bought Australian stocks (42%) followed by index funds (33%).
For those with less than five years of experience, ETFs were the most popular type of equity. After 6-10 years, individual shares start to overtake ETFs, suggesting an increase in confidence.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| STX | Strike Energy Ltd | 0.42 | 3.70 | 4,749,516 | 1,025,278,446 |
| VUK | Virgin Money Uk PLC | 3.48 | 3.42 | 1,933,482 | 2,330,350,072 |
| EVT | EVT Limited | 12.10 | 3.42 | 236,241 | 1,887,534,195 |
| BGL | Bellevue Gold Ltd | 1.51 | 3.24 | 3,672,747 | 1,656,888,489 |
| SKC | Skycity Ent Grp Ltd | 2.11 | 2.43 | 242,019 | 1,566,022,731 |
| MTS | Metcash Limited | 3.66 | 1.67 | 3,105,298 | 3,475,949,767 |
| SYA | Sayona Mining Ltd | 0.15 | 1.67 | 31,384,071 | 1,538,979,637 |
| LFG | Liberty Fin Group | 3.87 | 1.57 | 6,110 | 1,157,492,756 |
| JDO | Judo Cap Holdings | 1.31 | 1.55 | 200,179 | 1,426,120,635 |
| DEG | De Grey Mining | 1.36 | 1.49 | 1,259,252 | 2,092,481,362 |
| IAG | Insurance Australia | 5.97 | 1.45 | 5,544,148 | 14,350,407,822 |
| HLS | Healius | 2.92 | 1.39 | 555,482 | 1,640,728,572 |
Best performing large cap today was Strike Energy (ASX:STK), which rose 3% on no specific news.
Bellevue Gold (ASX:BGL) rose after reporting drilling returns hits such as 10m at 61 g/t gold and 18m at 52 g/t gold at its Bellevue Gold Project in WA.
The infill drilling results are well above the 6 g/t gold Reserve grade, and augur very well for production at the project.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| PNV | Polynovo Limited | 1.51 | -4.14 | 1,914,869 | $1,083,665,419 |
| DOW | Downer EDI Limited | 4.27 | -3.72 | 1,873,185 | $2,975,071,398 |
| PNI | Pinnacle Investment | 10.10 | -3.35 | 668,443 | $2,102,206,551 |
| JHX | James Hardie Indust | 41.17 | -3.22 | 1,434,534 | $18,722,800,472 |
| CTT | Cettire | 2.78 | -3.14 | 530,194 | $1,094,153,691 |
| SGR | The Star Ent Grp | 1.01 | -3.13 | 8,354,480 | $1,683,428,112 |
| GQG | GQG Partners | 1.54 | -3.00 | 1,049,210 | $4,680,196,613 |
| XRO | Xero Ltd | 120.12 | -2.92 | 177,030 | $18,730,965,158 |
| PDN | Paladin Energy Ltd | 0.76 | -2.88 | 3,964,180 | $2,325,280,579 |
| CCP | Credit Corp Group | 20.23 | -2.74 | 324,456 | $1,415,790,605 |
| BLD | Boral Limited | 4.26 | -2.63 | 829,912 | $4,820,496,391 |
| SGM | Sims Limited | 14.74 | -2.61 | 182,586 | $2,922,836,398 |
| AMP | AMP Limited | 1.09 | -2.46 | 8,811,817 | $3,134,432,516 |
| BSL | BlueScope Steel Ltd | 21.38 | -2.42 | 510,240 | $9,981,451,980 |
| SDR | Siteminder | 4.22 | -2.31 | 225,945 | $1,188,285,578 |
Industrial services company Downer EDI (ASX:DOW) fell after saying it expects an impairment charge of around $550m in the upcoming full year results.
As such, DOW expects underlying NPAT of approximately $174 million, which meets guidance. The company also expects statutory NPAT loss of approximately $386 million.
James Hardie (ASX:JHX) announced a landmark national agreement with D.R. Horton, Inc., the largest homebuilder in the US.
Through this relationship, James Hardie will become D.R. Horton’s national supplier for their hard siding and trim category through December 2026.
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